Germany Seizes Control of Russian-Owned Refinery, Finally

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Finally, the German government taken the local business of Russian Rosneft under trusteeship, handing control over the Schwedt to the country’s energy market regulator, Reuters reported, citing a government statement.

Schwedt is the fourth- in Germany, it is 54% owned by the Russian state oil giant, and it gets its oil from the Druzhba pipeline. It supplies 90% of Germany’s fuel needs.

Also Read: Germany And Europe Set For Energy Rationing After Russian Gas Cuts

“With the trusteeship, the threat to the security of energy supply is countered and an essential foundation stone is set for the preservation and future of the Schwedt site,” Berlin said in the statement.
Germany has been seeking options to take control of the facility for now as it pledged to end its imports of Russian crude. The alternative discussed for Schwedt was shipments of oil via another from Poland to Germany.

Among the other options considered earlier this year was to make Shell operator of the facility, but the supermajor reportedly had no interest in becoming the operator of the refinery.
The Reuters’ report yesterday said another option was to hand control of the to Poland’s PKN Orlen, which insisted that Rosneft is first kicked out before it assumes operatorship. 

Also Read: G7 Agrees On Oil Price Cap Against Russia

Expropriation of the assets was also on the table but there were fears Russia would retaliate by cutting natural gas deliveries to Germany if it tried to take Schwedt.
Now that Russia has already cut off shipments via Nord Steam 1, taking has clearly become an acceptable course of action.

Rosneft Deutschland is the second energy major in the country that will now be under the control of the Federal Network Agency after earlier this year the government tasked it with taking the German business of Gazprom.

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